BUDAPEST, Dec. 11 (Xinhua) -- The Hungarian government on Thursday announced a new framework agreement with Azerbaijan for the potential purchase of 800 million cubic meters of natural gas over the next two years, marking another step in its ongoing diversification strategy.
Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto said in Budapest that state energy group MVM and Azerbaijani firm SOCAR have concluded a framework enabling daily deliveries of up to 1.1 million cubic meters. He said the arrangement provides flexibility depending on market conditions.
"This means that MVM and SOCAR have agreed on the possibility of purchasing 800 million cubic meters of natural gas over two years. This agreement has been clarified in all its parts and has been concluded," he said, calling it "another very important step in the diversification of Hungary's energy supply."
The announcement comes amid a broader effort to widen Hungary's import portfolio. Last month, Prime Minister Viktor Orban said Hungary will purchase liquefied natural gas (LNG) from the United States over the next five years as part of its diversification strategy. In October, Hungarian energy company MVM CEEnergy signed the country's longest-ever LNG supply contract with France's Engie, covering 400 million cubic meters annually between 2028 and 2038, a total of 4 billion cubic meters.
Szijjarto reiterated that Hungary defines diversification as gaining access to multiple sources and routes rather than replacing existing suppliers, hinting at the country's main fossil fuel partner, Russia, as opposed to the European Union, which wants to cut all such Russian imports from 2027.
"Our strategy...aims to purchase from more sources, via more routes, and at lower cost," he added.
